In a significant financial distribution, the Federation Account Allocation Committee (FAAC) has divided N1.127 trillion of federal revenue among the Nigerian government tiers, including the Federal Government, states, and Local Government Councils (LGCs). The details were unveiled in a communique released after the January meeting, led by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

The breakdown of the N1.127 trillion total distributable revenue is as follows: distributable statutory revenue amounted to N363.188 billion, distributable Value Added Tax (VAT) revenue totaled N458.622 billion, and Electronic Money Transfer Levy (EMTL) revenue stood at N17.855 billion. Furthermore, Exchange Difference revenue contributed N287.743 billion to the total.

Out of a total revenue of N1.674 billion available in December 2023, N62.254 billion was deducted for the cost of collection, while N484.568 billion was allocated for transfers, interventions, and refunds. The gross statutory revenue of N875.382 billion reflected a decrease of N7.178 billion compared to the previous month. However, the gross revenue from VAT saw a significant increase, climbing to N492.506 billion from N360.455 billion.

The distribution of the N1.127 trillion total revenue resulted in the Federal Government receiving N383.872 billion, state governments receiving N396.693 billion, and the LGCs obtaining N288.928 billion. Additionally, N57.915 billion (13% of mineral revenue) was allocated to the benefiting states as derivation revenue.

Further specifics include the federal government’s receipt of N173.729 billion from the N363.188 billion distributable statutory revenue, while the state governments and LGCs obtained N88.118 billion and N67.935 billion, respectively. Moreover, N33.406 billion (13% of mineral revenue) was shared as derivation revenue.

From the N458.622 billion distributable VAT revenue, the federal government, state governments, and LGCs respectively received N68.793 billion, N229.311 billion, and N160.518 billion. Regarding the N17.855 billion EMTL, the federal government, state governments, and LGCs received N2.678 billion, N8.928 billion, and N6.249 billion, respectively.

The report noted significant increases in Companies Income Tax (CIT), excise duty, Petroleum Profit Tax (PPT), VAT, and EMTL, while oil and gas royalties experienced substantial decreases. Import duty and Common External Tariff (CET) levies witnessed marginal decreases. The Economic Financial Account (ECA) held a balance of 473.754 million dollars at the end of the period.